I came across an article by the entrepreneur turned VC, Mark Suster, which intrigued me. He highlighted how salespeople rarely take the risk of founding companies.
‘Most technology startups seem to be funded by product people or business people. Specifically what is often not in the DNA of founders are sales skills. The result is a lack of knowledge of the process, and of salespeople themselves.’
I found this intriguing because I’m a sales guy born and raised, but I’m also a founder. Why are other salespeople reluctant to take the big step? Are they missing out? Here are what I believe the reasons are.
Why take the risk?
Leaving your sales role to start something new is a massive risk. A good salesperson will already be doing pretty well, so they’ll be reluctant to roll the dice.
Sales leaders are generally the highest earners in a company. They’re busy all the time, and are likely to be motivated by mortgage payments and childcare bills, not disrupting industries and changing the world. It’s a big sacrifice to make.
Additionally, sales leaders have a lot of power and kudos at a company. They know they’re the drivers for growth, and without them, there isn’t really a business. They perpetuate their legend by maintaining that sales is an art rather than a science, and only they have the necessary tools for the job. Everyone else the company needs to support them. When you’re in the position, why would you want to start again at the bottom?
Salespeople are smart. They appreciate that starting a successful company will lead to big rewards in the future. However, they’re not smart enough to go and do it themselves. They want money to spend today, not in a few years’ time.
It’s too hard?
Founding a company is no easy task. If it was everyone would do it. If you’re a salesperson, who has found they’re good at something that pays well, it may be better to quit while you’re ahead.
When you're a sales leader at a successful company, you have the benefit of being able to sell an effective product. It’s likely to be a product that has sold in its millions before, that customers love and are happy to advocate, a product that works.
At a startup, you don’t have that luxury You have to cobble together a minimum viable product (MVP), then go to the market and sell it. Certain features won’t work well, if at all. It’s a tough sell.
All this is before you have to consider the other things founders have to do. Raising money, running teams of developers, building teams, dealing with technical problems. It sounds like hard work, you could be forgiven for wondering if you’re up to the job.
No one asked?
The reasons I’ve mentioned before put a bit of blame on salespeople themselves for not embracing startup life. However, I now want to turn it on its head.
I think there’s a natural distrust between technical people and salespeople, and when the technical people have an idea and want to start a startup, they don’t approach a salesperson to become a co-founder.
The old stereotype of slick sales jerks, economic with the truth, still exists. Why would a technical founder want to work with one of them at such an early, critical stage in their startup’s life?
Of course, the salespeople I know are thoughtful, analytical people who aim to solve their customers’ problems rather than line their wallets, but some stereotypes are difficult to overcome.
Maybe technical people need to open their eyes too.
Are we missing a trick?
That’s why I believe salespeople are founding startups right now. I want to pose one more question though. Are we missing out on great opportunities through our reluctance to play in this space? I believe so.
From the startup’s point of view, it’s obviously better to have someone who knows how to sell on board from the beginning. VCs love to see it too.
Sure, from a short-term salesperson’s point of view, it may not be a risk worth taking, but from a human viewpoint, it definitely is. Starting a company is hard work, but massively rewarding. Plus, it gets better the more your company grows. It’s great to take on a challenge. It’s great to expand your horizons. Who wants to do the same thing until you retire anyway?
If you ever get the opportunity to join a startup as a co-founder, please, for me, don’t just write it off because it’s comfortable at the top.
Over to you now, why do you think salespeople don’t start startups? Leave us a comment down below.
‘Most technology startups seem to be funded by product people or business people. Specifically what is often not in the DNA of founders are sales skills. The result is a lack of knowledge of the process, and of salespeople themselves.’
I found this intriguing because I’m a sales guy born and raised, but I’m also a founder. Why are other salespeople reluctant to take the big step? Are they missing out? Here are what I believe the reasons are.
Why take the risk?
Leaving your sales role to start something new is a massive risk. A good salesperson will already be doing pretty well, so they’ll be reluctant to roll the dice.
Sales leaders are generally the highest earners in a company. They’re busy all the time, and are likely to be motivated by mortgage payments and childcare bills, not disrupting industries and changing the world. It’s a big sacrifice to make.
Additionally, sales leaders have a lot of power and kudos at a company. They know they’re the drivers for growth, and without them, there isn’t really a business. They perpetuate their legend by maintaining that sales is an art rather than a science, and only they have the necessary tools for the job. Everyone else the company needs to support them. When you’re in the position, why would you want to start again at the bottom?
Salespeople are smart. They appreciate that starting a successful company will lead to big rewards in the future. However, they’re not smart enough to go and do it themselves. They want money to spend today, not in a few years’ time.
It’s too hard?
Founding a company is no easy task. If it was everyone would do it. If you’re a salesperson, who has found they’re good at something that pays well, it may be better to quit while you’re ahead.
When you're a sales leader at a successful company, you have the benefit of being able to sell an effective product. It’s likely to be a product that has sold in its millions before, that customers love and are happy to advocate, a product that works.
At a startup, you don’t have that luxury You have to cobble together a minimum viable product (MVP), then go to the market and sell it. Certain features won’t work well, if at all. It’s a tough sell.
All this is before you have to consider the other things founders have to do. Raising money, running teams of developers, building teams, dealing with technical problems. It sounds like hard work, you could be forgiven for wondering if you’re up to the job.
No one asked?
The reasons I’ve mentioned before put a bit of blame on salespeople themselves for not embracing startup life. However, I now want to turn it on its head.
I think there’s a natural distrust between technical people and salespeople, and when the technical people have an idea and want to start a startup, they don’t approach a salesperson to become a co-founder.
The old stereotype of slick sales jerks, economic with the truth, still exists. Why would a technical founder want to work with one of them at such an early, critical stage in their startup’s life?
Of course, the salespeople I know are thoughtful, analytical people who aim to solve their customers’ problems rather than line their wallets, but some stereotypes are difficult to overcome.
Maybe technical people need to open their eyes too.
Are we missing a trick?
That’s why I believe salespeople are founding startups right now. I want to pose one more question though. Are we missing out on great opportunities through our reluctance to play in this space? I believe so.
From the startup’s point of view, it’s obviously better to have someone who knows how to sell on board from the beginning. VCs love to see it too.
Sure, from a short-term salesperson’s point of view, it may not be a risk worth taking, but from a human viewpoint, it definitely is. Starting a company is hard work, but massively rewarding. Plus, it gets better the more your company grows. It’s great to take on a challenge. It’s great to expand your horizons. Who wants to do the same thing until you retire anyway?
If you ever get the opportunity to join a startup as a co-founder, please, for me, don’t just write it off because it’s comfortable at the top.
Over to you now, why do you think salespeople don’t start startups? Leave us a comment down below.
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